Global Hospitality Report (May 26, 2015)

In Focus: Downtown Los Angeles Hotel Market 
By Nordee Saritvanich

A population boom and new development money in Downtown Los Angeles lead to a dramatic increase in the supply pipeline. Recent hotel transactions have been geared towards redevelopment and repositioning.

In Focus: Amsterdam Hotel Market Update 
By Nicole Perreten and Constance Biria

The article presents an update on the hotel market in Amsterdam, discussing trends in tourism, hotel/hostel performance, and new supply along with investment characteristics and future challenges.

Three Key Takeaways | Crittenden National Real Estate Conference 
By Kathleen Donahue

When it comes to raising capital for hotel projects in today’s market, hoteliers have many options to explore, as long as they come armed with solid numbers on hotel performance, revenues, expenses, and projections on value.

Orlando's Changing Landscape: Opportunities Abound for Continued Hospitality Development in the Greater Orlando Region 

Extremely encouraging data and anecdotes alluding to the explosive development and positive outlook for hospitality and tourism in the Orlando region were shared at the first annual HVS Central Florida Hotel Market Review (CFHMR) hosted on May 7 by HVS Miami.

11th Annual China Hotel Investment Conference (CHIC) Successfully Concludes 

Hosted by HVS and co-hosted by the China Tourism Academy and the Beijing International Studies University, the 11th China Hotel Investment Conference (CHIC) 2015, which was held on May 12-14 at the Mandarin Oriental Pudong, Shanghai, brought together 425 delegates including industry stalwarts, business leaders and key decision-makers from the hotel and tourism industry across 12 nations. Over the last decade, CHIC has established its reputation as ‘the most influential hotel investment conference in the region’ by consistently delivering a wealth of timely market insights that facilitate corporate strategies and growth in the world's second largest economy. The CHIC Organizing Committee thanks all sponsors, partners and delegates for their valued support, and for contributing towards an immensely successful 2015 event.

Two Accor Hotels to Open in Treasure Bay Bintan  

PT Bintan Hotel Utama, a wholly owned subsidiary of Malaysia’s Landmarks Berhad, has entered into a joint venture with Singapore-based ML Hotel Investments Pte Ltd to develop two new Accor-branded hotels in Treasure Bay Bintan. The hotels, a 182-key Mercure and 162-key ibis Budget, are projected to open in 2017. Out of its 182 keys, 114 long-term leases will be made available for sale at the mid-scale Mercure Hotel. The two hotels will increase new supply to around 1,700 rooms currently within Bintan’s development pipeline, all of which are concentrated in the northern region of Bintan Island, within the Treasure Bay Integrated Resort and Lagoi Bay developments. Historically, Bintan Island has experienced fluctuations in annual arrivals. In 2013, the island recorded 657,647 visitor arrivals, a year-on-year decline of 10.1% from 2012. With development currently ongoing for Lagoi Bay, Treasure Bay and the new Bintan Airport, the island is likely to see renewed attractiveness as a tourism destination in years to follow.

Mandarin Oriental to Purchase the Ritz Madrid in a Joint Venture  

In a joint venture with Saudi Arabian conglomerate The Olayan Group, Mandarin Oriental International Ltd is to acquire the Hotel Ritz Madrid in Spain for €130 million (€778,400 per room) from Belmond Spanish Holdings and Landis Inversiones. HVS London was pleased to advise Mandarin Oriental on the transaction. Mandarin will manage the 167-room hotel, which dates back to 1910, under a long-term contract, and Mandarin and Olayan will each hold a 50% share in the property. Following its sale, the hotel, in one of the city's exclusive residential areas, is expected to undergo an extensive renovation estimated to cost €90 million, which will increase the purchasers' total investment in the property to more than €1.3 million per room.


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